Tuesday, August 28, 2001
Sun Micro est. cut by Goldman
--7:49am - By Emily Church
Shares of Sun Microsystems (SUNW) were last off 30 cents at $14.20 on Instinet. Goldman Sachs lowered its
revenue and earnings per share estimate on the stock overnight ahead the company's intra-quarter conference call
on Wednesday. Analyst Laura Conigliaro cut September quarter revenue to $3.7 billion from $3.8 billion and cut
her EPS estimate to 1 cent from 2 cents for the period. "Sun's stock has already taken huge blows, is one of the
better names in our group and should ultimately benefit from a strong product cycle... For now, however, we think
the economic cycle probably has the upper hand," she said.
also:
Goldman: Fed should have popped bubble
--6:21pm - By Rex Nutting
The Federal Reserve should have done more to prevent the tech-stock bubble from getting too big in 1998 and
1999, said Goldman Sachs chief economist Bill Dudley. He said the Fed should have raised interest rates in
1996-99 to fight asset price inflation. "After all, with the benefit of hindsight, it is pretty obvious that billions of
dollars of investment spending have simply been wasted," Dudley wrote. Fiscal policy was too loose and so was
Chairman Alan Greenspan's mouth. Greenspan may have helped investors abandon their caution with his
enthusiastic endorsement of the new economy paradigm, Dudley said. "Fed officials should view their job more
broadly--not just to prevent inflation pressures, but also to prevent other types of economic imbalances that
threaten the economy's stability," he said. |
